Main trends in hyper markets and discount stores

Marked consolidation is taking place in FMCG retail trade, as over one third of total turnover is now shared by the three largest chains. The 98 hyper markets represent only 0,5 per cent of all stores, but account for over 30 per cent of total retail sales.
Sales in the 150 retail categories monitored by ACNielsen grew increased by 5,9 per cent compared to last year. Total combined sales amounted to HUF 1 344 billion in the last period. Food sales showed an increase of 6,2 per cent in the October 2005 – September 206 period, while sales in the drug categories expanded by 5 per cent between September 2005 and August 2006.
Modern channels keep expanding: in the first seven months of the year, 6 new hyper markets, 18 discount stores and 10 super markets were opened. Large store space is good for promotions, since (18) per cent of people enjoy taking a look at the assortment in hyper markets, while only 5 per cent do this in discount stores. This is especially important, since Hungarian customers are exceptionally receptive to promotions, with 47 per cent specifically looking for promotions in stores.
The market share of hyper markets in food sales is still around 28 per cent, while this is 38 per cent for sales of chemical products. Discount are strongest in food sales with their market share growing to 17,1 per cent between October 2005 and September 2006.
As a result of the growing number of discount stores like Lidl and Plus, the market share of private label products is also growing. Sales of the private labels of discount chains show an expansion of around 50 per cent in both food and non-food categories.